Jamsostek tightens investment policy

Jamsostek tightens investment policy

JAKARTA (JP): PT Jamsostek, a state-owned company that runs a
social security program for workers, has tightened its investment
policy to prevent future losses and to improve its image.

Jamsostek president Ackmal Husin said on Monday that, learning
from widespread criticism and instances of bad investment, the
company would no longer arbitrarily inject its participatory
capital into other companies.

The company would instead form a team to deal with investment,
he said. "Before making any decisions, the team will consult the
government, namely the minister of finance, so that all decisions
are accountable," he said here yesterday.

He said the company suffered a loss of Rp 2.3 billion when it
bought convertible bonds worth Rp 4 billion published by PT
Tetronix in 1992.

PT Jamsostek suffered losses when the electronics factory that
produced Grundig TV sets and radios caught fire in 1995.

Ackmal said the company was also facing difficulties regaining
its money from the purchase of commercial papers worth Rp 36
billion from (PT) Bank Pacific which was liquidated by the
government last November.

"We will ask the Attorney General's Office's help to handle
the case," he said, adding that of the Rp 36 billion, the bank
had returned Rp 14 billion to PT Jamsostek in the form of a 187-
hectare plot in Jonggol, Bogor, West Java.

He said the bank had to return the rest of Rp 22 billion since
the money came from workers and employers participating in the
program.

Ackmal denied speculation he has been held as a suspect in the
land deal between PT Jamsostek and Bank Pacific, saying that his
company would sue Ponco Sutowo, the bank's owner, over the
troubled commercial papers.

Jamsostek's investments have reached Rp 6.7 trillion. This has
been invested in participatory stakes in listed companies, bank
deposits and commercial papers in state and private banks and the
central bank.

Ackmal also urged the government to continue enforcing the law
on social security programs, despite the plan to privatize the
program.

"The government should be consistent in enforcing the law to
give insurance protection for workers until a new law is made,"
he said.

He said that a majority of workers and companies had yet to
participate in the compulsory social security program.

According to data from the company, of the country's 60
million workers, only 14 million participated in the insurance
program.

The law stipulates companies employing 10 workers or more, or
paying Rp 1 million per month in wages, are obliged to
participate in the program. (rms)